ModivCare stock plummets after Chapter 11 bankruptcy filing

Published 25/08/2025, 14:34
© Reuters.

Investing.com -- ModivCare Inc (NASDAQ:MODV) stock plunged 45% premarket Monday after the technology-enabled healthcare services company announced it had filed for Chapter 11 bankruptcy protection and received notice that its shares would be delisted from Nasdaq.

The Denver-based company, which provides supportive care solutions focused on improving health outcomes, filed for bankruptcy on August 20, 2025, triggering Nasdaq’s decision to commence delisting proceedings. Trading in ModivCare’s common stock will be suspended at the opening of business on August 28, 2025.

ModivCare stated it plans to implement a comprehensive restructuring transaction through expedited bankruptcy proceedings to "strengthen its future, reduce debt and inject capital." The company noted that the restructuring has support from a "supermajority" of its key stakeholders.

According to the company, all of its service lines are expected to continue operating normally during the bankruptcy process, with no anticipated interruption or change in access to care.

In a separate but related development, ModivCare also received notice from Nasdaq on August 20 that it was out of compliance with listing rules due to its failure to timely file its quarterly report for the period ended June 30, 2025.

The company does not plan to appeal Nasdaq’s delisting decision and expects its shares will be quoted on the OTC Pink Market following removal from the exchange, though it provided no assurance that trading would continue on this alternative market.

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